International Economics Strategies Analysis

International Economics Strategies Analysis Name Institutional Affiliation International Economics Strategies Analysis Introduction Handos is a firm that specializes in the production of cookware and ultimately selling to the customers. Fortunately, its research and development team has created a distinct cookware line of goods, which have become popular besides the fact that they are reasonably priced. The firm’s operations are widespread globally with designs produced in different countries, manufacturing in others, and most of the retail products end up in the United States’ (U.S.) and Europe’s major cities. Sales reports indicate that the company is influencing the market significantly. In the process, Handos has undaunted access to production capacity and capital. The tremendous growth in sales has advanced the senior managers’ conviction that they have what it takes to conquer the international market. This position is a tricky one for Handos in that if it fails to proceed strategically, it may fail terribly, whereas the products themselves are quite convincing to attract newer customers every day. Organization of the Business Outside of the United States The first step in the process of venturing the international market is to establish the necessary systems and processes needed for the business enterprises to be successful. These prerequisites ought to be in places that have been designated as the target market. Relevant systems and processes serve as prerequisites to a global venture. An example of this is setting up offices in the new markets prior to the venture. The goal of these office branches is for the branch manager to initiate contacts with the most relevant personnel in the market besides forging familiarity with the new marketplace. This procedure allows the firm to come in touch with other important market players such as suppliers and distributors who will become crucial stakeholders for the firm. Another important element of this procedure is to seek the best approach in integrating the local management into the firm. Local management including local managers is familiar with the local consumers. The extent of global dominance that Handos intends to articulate is far much significant to be approached lightly. In this respect, it is essential to consider the fact that different people have different cultures. Failure to integrate and understand their culture, including its consumer culture, would result in a disaster even for better and quality products. An example of failure in this regard is Wesfarmers that had ‘overgrown’ its domestic market in Australia and wanted to seek new pastures. It ventured into the United Kingdom (U.K.) where the firm instead of hiring local managers, imported its manpower from Australia. However, their abrasive manner of doing business failed to align with the customers in the U.K., and consequently, the firm lost approximately $1.75 billion (Boyd, 2018). The lesson here is that the customers’ perspective matters more than the quality of the product. Independent Companies or Subsidiaries in Each Foreign Market The discussion below is based on the mere fact that the production capacity and capital at Handos’ disposal is insurmountable. When this is the case, Hand...